TaxCalc Blog

HMRC to Remove VAT100 XML Filing Service

The need for agents to migrate VAT-registered business to Making Tax Digital (MTD) for VAT is more timely than ever. Here’s what you need to know.

Recently, HM Revenue and Customs shared news of changes to its IT infrastructure, involving the migration of VAT Customer Accounts to a new system. Following this migration, HMRC will decommission the current XML submission service from 8 April 2021.

TaxCalc VAT Filer uses the XML submission service to submit VAT Returns (VAT100s) to HMRC for businesses that are not yet registered under MTD for VAT. This means that from 8 April 2021, TaxCalc VAT Filer will not be able to file VAT100 Returns for businesses NOT registered for MTD for VAT. This also applies to all other third-party software providers.

Don’t panic!

There’s no need to worry. TaxCalc VAT Filer is already enabled for MTD for VAT businesses and this service will continue as normal after the 8 April cut-off. EC Sales List submissions are also unaffected.

How does this affect you?

As you and your eligible clients will no longer be able to use third party software to file non-MTD VAT Returns from April 8 2021, we recommend that you migrate your client VAT business(es) across to MTD for VAT before this time.

Migrating your clients to MTD for VAT sooner makes sense

Although HMRC will provide the ability to submit a VAT Return from the relevant Business Tax Account until MTD for VAT is universally mandated from April 2022, for the sake of good housekeeping (and any inconvenience you may incur in the future), now’s a good time to start moving across your client VAT businesses to MTD for VAT.

The move to MTD for VAT also requires that your clients keep digital records, such as a spreadsheet or use of bookkeeping applications. For those client businesses not currently using digital records, it makes sense to begin the process as early as possible to ensure a smooth transition when mandates arrives.

The good news is, migrating your client businesses across to MTD for VAT is a simple process and TaxCalc can assist you every step of the way. Please see:

• A guide for MTD for VAT
• Our knowledgebase article (including video) on how to submit MTD VAT returns using VAT Filer.

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